European Union lawmakers have agreed to soften planned 2035 CO2 targets for new cars. The compromise would require an 87.5% cut in average emissions from 2021 levels, with a 7.5% top-up available through use of low-carbon steel made in the EU. That replaces the European Commission's earlier proposal of a 90% cut with 10% offset via low-carbon steel and alternative fuels. Vans would face an 80% cut in 2035, and the 2030 target would stay at 55% for cars but drop to 35% for vans, down from the Commission's proposed 40%. Automakers could average 2030 compliance across 2029-2031, and cars running on renewable fuels could be treated as zero-emission. Small affordable EVs and efficient models would earn super-credits. The deal still needs formal sign-off from the three parliament groups, then negotiation with EU governments. France and Germany recently agreed to a 90% target for 2035 with no compensation, so the final text may shift again.
